Have you ever thought about stealing? If the answer is NO, then you need to find another profession because you will never be a successful fraud examiner/investigator or a financial auditor. To find fraud, you must first determine, given the opportunity through weak internal controls, how a person would steal. You have to say to yourself, given the opportunity that exists, how many ways could I take advantage of it? In other words, you must be able to think how you could steal and not be caught. So yes, to find fraud, you must first think about stealing. For a fraudster to be successful, they must make you think fraud is a legitimate transaction. They must make you think it is something that it is not. There are so many places where fraud can be hidden. It is up to you to evaluate where the risks of fraud are in an organization, then design effective investigative procedures to determine if someone took advantage of the opportunity. If they did not, how else may they have taken advantage of the opportunity? One must remember that one weakness in internal control may create several ways to take advantage of it and you must examine every such one. During this session, the many ways fraud can be hidden in asset misappropriations will be discussed. Remember, the number of ways is only limited by one’s imagination.
Learning Objectives
Explain how asset misappropriation occurs within organizations. Identify common opportunities for fraud created by weak internal controls. Apply a fraudster’s perspective to recognize how assets could be stolen or concealed. Assess organizational areas with higher risk for asset misappropriation. Recognize methods used to disguise fraudulent transactions as legitimate activities. Develop investigative approaches to detect potential asset misappropriation schemes.
Major Topics
Asset Misappropriation Fraud Opportunities Internal Control Weaknesses Fraudster Mindset Concealment Methods Fraud Risk Assessment Investigative Procedures
